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Navigating New York Payroll Taxes
New York State employers must comply with several payroll tax requirements, including New Hire Reporting and state income tax withholding. These obligations are administered by the NYS Department of Taxation and Finance and apply to all employers with workers in the state.
This guide provides a comprehensive overview of New York payroll tax filing requirements, covering New Hire Reporting and withholding Forms NYS-45 and NYS-1, along with filing deadlines, reporting methods, and compliance considerations to help employers stay up to date and avoid penalties.
New York New Hire Reporting
New Hire Reporting is a mandatory legal requirement for all employers in New York State to report newly hired and rehired employees to the NYS Department of Taxation and Finance. This reporting supports child support enforcement and helps reduce fraud in unemployment and public assistance programs.
Who must report
All employers who meet the definition of an employer under federal income tax withholding must report new hires in New York State. This includes:
- Private businesses of all sizes
- Employers of domestic help
- Labor organizations, including hiring halls
- Government entities
Note:Federal agencies are exempt — they report directly to the National Directory of New Hires.
Independent Contractors: employers must report independent contractors with contracts exceeding $2,500 via the New York New Hire Online Reporting Center, not Form IT-2104.
Multi-State Employers
Multi-state employers have two options:
- Report newly hired employees to each state where they work, following each state's specific regulations; or
- Select one state where employees work and electronically report all new hires to that single state
Multi-state employers who choose Option 2 and designate New York as their reporting state must use one of the approved electronic reporting methods listed below.
What to report
- Employee information: Full name (first, middle initial, last), mailing address (street, city, state, ZIP), Social Security Number (SSN), hire date, and dependent health insurance benefits availability and qualifying date.
-
Employer information: Employer name, address (street, city, state, ZIP), and Federal Employer Identification
Number (FEIN).
Note:Non-US resident visa employees must be reported within 20 calendar days from the date they receive their SSN from the Social Security Administration. ITINs and Permanent Resident Alien numbers cannot be used in place of
an SSN.
When to report
Employers must report newly hired or rehired employees within 20 calendar days of the hiring date. The hiring date is the first day the employee:
- Performs any services for which they will be paid wages, tips, commissions, or any other compensation; or
- Is eligible to earn commissions for services based solely on commissions
Electronic filers must submit two monthly reports between 12 and 16 days apart if needed.
Rules for Specific Employment Types:
- Rehired employees: Must be reported if the break in service is 60 calendar days or more. Less than 60 days — no need to report
- Temporary employees: Report temps you pay directly. If purchased from a temporary service agency, the agency is responsible for reporting — not you
- Teachers and professional athletes: Paid an annual salary and returning after a seasonal break are not considered rehired — no need to report
- Placement agencies: Not required to report individual clients — the hiring employer is responsible for reporting
How to report
1. Online (Recommended):
- Report new hires through the New York New Hire Online Reporting Center
- Required for reporting independent contractors with contracts over $2,500
- Electronic filers: contact Employer Outreach at (518) 320-1079 for current file specifications
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2. By Fax:
- Submit a copy of Form IT-2104 (Employee's Withholding Allowance Certificate)
- Fax to: (518) 320-1080
- Keep fax confirmation for your records
3. By Mail:
-
Complete Form IT-2104 and mail to:
New York State Dept of Taxation and Finance
New Hire Notification
PO Box 15119
Albany, NY 12212-5119Note:Existing employees updating deductions or withholding do not need to file Form IT-2104 or federal W-4; reporting is only for new or rehired employees.
New Hire Reporting Penalties
Failure to timely report new hires: Employers who miss the 20-day reporting deadline will be fined $20 per employee
not reported.
Filing a false or incomplete report: Employers who submit missing or incorrect information will be fined $20 per false or incomplete report filed.
New Hire Corrections
If you discover an error on a previously submitted new hire report, corrections should be made through the New York New Hire Online Reporting Center. For assistance, contact the New York New Hire Employer Outreach Department directly:
- Phone: (518) 320-1079
New York Withholding Tax Forms (NYS-45 and NYS-1)
New York State employers are required to withhold and pay personal income taxes on wages, salaries, bonuses, commissions, and other similar income paid to employees. These filings are administered by the NYS Department of Taxation and Finance and cover New York State, New York City, and Yonkers withholding taxes.
Note:March 2025 Changes: Effective March 2025, Form NYS-45 must be filed as a single combined return; NYS-45-X and NYS-45-ATT are discontinued. Part C now requires separate reporting of NYS, NYC, and Yonkers tax withheld per employee.
Who Must File
All employers who pay wages or other payments subject to New York State withholding must file returns and pay the required NYS, NYC, and Yonkers taxes withheld. This includes:
- Private businesses of all sizes
- Nonprofit organizations
- Government agencies
- Employers of domestic help
- Employers withholding for New York City and Yonkers residents
Employers must register with the NYS Tax Department before filing. You must file Form NYS-45 every quarter, even if you paid no wages and have zero withholding during that period.
Form Types
Form NYS-45: Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return
- Purpose: New York's primary employer return — combines withholding tax, wage reporting, and unemployment insurance into a single quarterly filing. Effective March 2025, all three parts must be filed together as one return
- Who must file: All employers required to withhold New York State income tax, including those with zero wages in the quarter. Form NYS-45 must be filed every quarter, regardless of whether wages were paid or tax was withheld.
-
Parts of the form:
- Part A: Unemployment Insurance (UI) information
- Part B: Withholding tax information
-
Part C: Quarterly employee wage reporting — must separately report NYS, NYC, and Yonkers tax withheld for
each employee
-
When to file: Due on the last day of the month following the end of each quarter:
- Q1 (Jan–Mar): April 30
- Q2 (Apr–Jun): July 31
- Q3 (Jul–Sep): October 31
- Q4 (Oct–Dec): January 31
Note:When the due date falls on a Saturday, Sunday, or legal holiday, you may file on the next business day. No extensions of time to file or pay are allowed.
- Where to file: Electronically via NYS Online Services (mandatory for most employers)
Form NYS-1: Return of Tax Withheld
- Purpose: Used to remit withheld tax after each payroll where accumulated withholding reaches or exceeds $700 during the quarter
- Who must file: Employers who withhold $700 or more during a calendar quarter. If you withhold less than $700 in a quarter, do not file NYS-1 — remit with your quarterly NYS-45 instead
-
When to file:
- If you withheld $15,000 or more in the calendar year two years prior, file NYS-1 within 3 business days after the payroll that caused accumulated withholding to reach $700
- If you withheld less than $15,000 in that year, file NYS-1 within 5 business days after that payroll
Note:If you have more than one payroll within a week (Sunday through Saturday), you are not required to file NYS-1 until after the last payroll in that week
What to Report
When filing Form NYS-45 and Form NYS-1, employers must report:
- Employer Information: Business name, address, FEIN, and NYS withholding identification number
- Total Wages Paid: Total remuneration paid to employees during the reporting period, including wages, salaries, bonuses, commissions, and tips
- Total Tax Withheld: Total New York State, New York City, and Yonkers income tax withheld from employee wages for the period — reported separately for each.
- Employee Wage Detail: For each employee: SSN, full name, total wages paid, and NYS/NYC/Yonkers tax withheld
- UI Information: Total taxable wages subject to unemployment insurance contributions (NYS-45 only)
-
Adjustments: Any overpayments, underpayments, or credits applicable to the reporting period
Note:The 2026 UI taxable wage base is $17,600 per employee. Only wages up to this amount are subject to UI contributions on NYS-45 Part A.
How to File
You have several filing options to submit Form NYS-45 and Form NYS-1 to the NYS Department of Taxation and Finance:
1. Online via NYS Online Services (Required for most employers):
- Log in at NYS Online Services and select NYS-45 Web File or NYS-1 Web File
- File all three parts of NYS-45 together as a single return
- Manual entry supported for up to 1,000 lines of wage reporting data; unlimited records via file upload
- Payment via ACH Debit — two separate payments required for NYS-45: one for withholding tax and one for UI
- Payroll service providers filing for multiple employers must use NYS-45 Upload or NYS-1 Upload with prior approval from the NYS Withholding Tax Information Center
- Employers withholding $100,000 or more in the prior year must use PrompTax and remit within 1 to 3 business days of each payroll period.
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2. By Mail (exempt filers only):
- Paper filing is permitted only for employers exempt from the NY e-file mandate
- Use only Forms NYS-45 and NYS-1 with 2025 revision dates — do not use older saved copies
- Forms NYS-45-X and NYS-45-ATT have been discontinued — submit a completely new Form NYS-45 instead
- Make check payable to NYS Employment Contributions and Taxes and mail to:
NYS Employment Contributions and Taxes
PO Box 4119
Binghamton, NY 13902-4119
Tax Payments
Withholding tax payments are made based on your assigned deposit schedule:
- If accumulated withholding reaches $700 or more during a quarter, remit via Form NYS-1 within 3 or 5 business days (based on prior year withholding)
- If accumulated withholding is less than $700 for the quarter, remit with your quarterly Form NYS-45
- Overpayments on Q4 NYS-45 returns are automatically refunded — you cannot request a credit across tax years
NY Withholding Tax Penalties
Employers in New York State must file and pay withholding tax returns on time. Failure to meet deadlines results in penalties and interest assessed by the NYS Department of Taxation and Finance.
| Penalty Type | Penalty Rate / Amount | When It Is Incurred |
|---|---|---|
| Failure to File NYS-45 | Greater of $1,000 or $50 per employee, capped at $10,000 per quarter | When the quarterly NYS-45 return is not filed by the due date. May be waived if filed within 30 days of notification |
| Failure to File NYS-1 | $50 per payroll not reported on time | When NYS-1 is not filed within 3 or 5 business days of the payroll that triggered the $700 threshold |
| Inaccurate Withholding Info | 5% of quarterly withholding tax liability, capped at $10,000 per quarter | When incorrect withholding amounts are reported on NYS-45 |
| Incomplete Employee Info | $50 per employee filed late / $100 per employee for incorrect or incomplete info | When employee wage details in Part C of NYS-45 are missing, late, or inaccurate |
| Late Payment | 0.5% per month, up to 25% of tax due | When tax payment is not received by the due date for either NYS-45 or NYS-1 |
| Electronic Filing Violation | Additional penalties and processing delays | When employers are required to e-file, they submit paper returns instead |
| Interest | 9.5% per year, compounded daily | On any unpaid tax balance from the original due date until paid in full |
NY Withholding Tax Corrections
If you discover an error on a previously filed Form NYS-45 or NYS-1, such as incorrect wages, wrong withholding amounts, or missing employee details, you must file an amended return as soon as possible to avoid additional penalties.
- Online (Preferred): Log in to NYS Online Services and file an amended NYS-45 or NYS-1. If you electronically filed the original return, your information will prepopulate automatically, making corrections faster and easier.
- By Paper (exempt filers only): Submit a complete new Form NYS-45 or Form NYS-1 marked as amende,d including all three parts and all employee records, not just the changed lines. Forms NYS-45-X and NYS-45-ATT have been discontinued and are no longer accepted.
- SSN Corrections: Must be corrected by filing an amended NYS-45. NYS can no longer accept responses to TR-900-SD notices to correct Social Security numbers.
For assistance, visit tax.ny.gov or contact the NYS Tax Department at (518) 457-5431.
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TaxBandits offers clear, flat-rate pricing for New York payroll forms, ensuring fast, accurate, and affordable e-filing.
| Forms | Price per Form* |
|---|---|
| New Hire Reporting | $1 / Employee |
| Withholding Tax Return (NYS-45) | $5.95 |
| Return of Tax Withheld (NYS-1) | $5.95 |
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- New Hire Reporting
- Forms NYS-45 & NYS-1
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Frequently Asked Questions
How do I report a new hire in New York State?
Register at www.nynewhire.com using your FEIN and a valid email address, then log in and submit new hire information electronically. You can also fax to
(518) 320-1080 or mail Form IT-2104 to the NYS Tax Department, PO Box 15119, Albany, NY 12212-5119.
How long does a New York employer have to report a new hire?
New York employers must report new hires within 20 calendar days of the hiring date. Electronic filers must submit two monthly reports between 12 and 16 days apart. This applies to full-time, part-time, temporary, and rehired employees.
Do New York employers need to report independent contractors?
Yes. Effective January 1, 2022, New York employers must report independent contractors under arrangements with contracts exceeding $2,500. Independent contractors must be reported online only through www.nynewhire.com and cannot be reported via Form IT-2104.
Do I need to report a rehired employee in New York?
Yes. If an employee is rehired after a break in service of 60 or more consecutive days, they must be reported as a new hire within 20 calendar days of their return to work. Breaks of less than 60 days do not require reporting.
What is the penalty for not reporting new hires in New York?
New York employers who fail to timely report new hires will be fined $20 per employee not reported. Filing a false or incomplete report also carries a penalty of $20 per report filed.
Do I need to file NYS-45 if I have no employees this quarter?
Yes. New York employers must file Form NYS-45 every quarter, even if no wages were paid and no tax was withheld during that period. Failure to file a zero-wage return may result in a penalty of the greater of $1,000 or $50 per employee, capped at $10,000 per quarter.
When is Form NYS-45 due in New York?
Form NYS-45 is due quarterly on the last day of the month following each quarter end. Quarter 1 is due April 30, Quarter 2 is due July 31, Quarter 3 is due October 31, and Quarter 4 is due January 31. All three parts must be filed together as a single return.
What is Form NYS-1, and when do I need to file it?
Form NYS-1 is New York's Return of Tax Withheld. You must file it when accumulated withholding reaches $700 or more during a quarter. File within 3 business days if you withheld $15,000 or more in the prior year, or within 5 business days if less. If withholding stays under $700 for the quarter, remit with your NYS-45 instead.
Is electronic filing required for NY withholding tax returns?
Yes. Electronic filing is required for all New York withholding tax returns, including NYS-45 and NYS-1. Paper filing is only permitted for employers exempt from the e-file mandate. If filing by paper, use only forms with 2025 revision dates — forms NYS-45-X and NYS-45-ATT have been discontinued as of March 2025.
What is the penalty for filing NYS-45 late in New York?
The penalty for failure to file Form NYS-45 is the greater of $1,000 or $50 per employee, capped at $10,000 per quarter. Late payment carries an additional 0.5% per month, up to 25% of the tax due. Interest accrues at 9.5% per year on any unpaid balance from the original due date.
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